The interest rate given illustrates that the amount after tax will be $8933.96.
<h3>How to calculate the amount after tax?</h3>
From the complete information, Sarah receives a $10,000 bonus at work and the accounts earn 5 percent nominal interest, and Sarah is in the 30 percent tax.
Therefore, the amount after tax will be:
= 10000(1 + 5%)⁵ - 30% × 10000(1 + 5%)⁵
= 10000(1 + 0.05)⁵ - 30% × 10000(1 + 0.05)⁵
= 10000(1.2763) - 0.3 × 10000(1.2763)
= 12762.81 - 3828.84
= $8933.96
Therefore, the amount after tax will be $8933.96.
Learn more about tax on:
brainly.com/question/9437038
